It doesn’t matter what state you live in, foreclosure by judicial sale is available. Foreclosure by judicial sale is the process of selling a mortgaged property under court supervision. First, the proceeds from the sale go to pay off the mortgage. Second, they go to pay off other lien holders. Third, anything leftover will belong to the original mortgage borrower.
If your property is being sold via court supervision like this, you need to be very careful to ensure that every party affected by the sale is included in the matter. This way, the buyer of the foreclosed property will get a valid title once the sale is complete. Parties to include could be any party that acquired liens, easements or leases on the property after the execution of the original mortgage. Essentially, parties that have an interest in the real estate asset must be appropriately dealt with during the court proceedings before the sale of the property can take place.
These matters can be very complicated to navigate from a legal perspective. For example, let’s say you take out a mortgage from Lender A, and then take an additional mortgage from Lender B. Later, Lender B files for foreclosure and decides to sell the real estate asset to an interested buyer. In order to sell the property, Lender B must satisfy any claims that Lender A has on the property. If it does not, then Lender A can seek payment from the party that bought the property in the foreclosure sale.
If you found this difficult to follow, you’re not alone. That’s why it’s so helpful to have an experienced San Antonio real estate lawyer assist you in any foreclosure matter you encounter. A lawyer will educate you on your options while advocating to protect your legal rights.
Source: FindLaw, “Foreclosure by judicial sale,” accessed March 24, 2017